Gold prices could remain volatile in the coming months, but expectations of continued central bank buying, inflation concerns and geopolitical uncertainty are likely to support the precious metal in the longer term.
Several global banks and brokerages have started sharing their gold price forecasts for 2027, with JPMorgan among the most bullish, expecting prices to reach $6,300 an ounce.
Gold has had a volatile year after starting 2026 at around $4,330 an ounce. Prices touched a record high of $5,608 in January before declining to $3,980 in July. The precious metal recovered to around $4,670 in August but fell again in October to a yearly low of $3,850. Gold was trading at around $4,120 an ounce on November 6.
After four consecutive years of gains, gold is headed for a decline of around 4.5% in 2026. This follows a strong 2025, when prices gained nearly 70%.
Despite the recent correction, several factors continue to support the outlook for gold. These include portfolio diversification, central bank purchases, inflation concerns, rising global debt and geopolitical uncertainty.
Global central banks are expected to buy between 600 and 800 tonnes of gold. China has continued its buying spree for 23 consecutive months, providing further support to prices. The positioning of money managers is also relatively low following the recent profit booking, leaving room for fresh accumulation if prices decline further.
Several global banks and brokerages have shared their gold price forecasts for 2027, with most expecting prices to remain supported.
JPMorgan has the most bullish forecast, expecting gold prices to reach $6,300 an ounce next year. UBS sees prices touching $5,200 by the second or third quarter of 2027.
Going ahead, markets will closely track US inflation data for further cues on gold prices. The stronger-than-expected non-farm payroll data released on Friday has increased expectations of another US Federal Reserve rate hike in December.
Markets are pricing in a more than 80% probability of a 25-basis-point rate hike.
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Gold prices may remain volatile, JPMorgan sees prices at $6,300/oz in 2027
